 "States can adopt Rajasthan model, Centre won't object: Bandaru Dattatreya")
As the Rajasthan government takes a step towards labour reforms, it has set a precedent for others to follow. As new Union Labour Minister Bandaru Dattatreya assumes charge, he tells Somesh Jha, in his first interview, although it is not considering changes on similar lines for now, it will observe Rajasthan's case carefully. Asserting labour is not a hindrance to the working of the industry, he also says creating a conducive business environment is important, as the survival of industries is a must. Edited excerpts:
How do you view the labour law changes made by the Rajasthan government?
Labour is on the concurrent list of the Constitution. So, states can amend their own laws. Every state has a different set of conditions. We are observing the consequences and reactions.
We have not thought about it at all. But every state government is looking at Rajasthan. Let state governments first take a decision. If a state wants to adopt that model, you can't object.
But the trade unions have opposed the move…
I will have a dialogue with them (trade unions) before the next Parliament session.
We will look into their grievances. There will be opposition to changes at first. But that is not considered progressive. There shouldn't always be a standstill.
Recently, Bosch company's top management sought pro-active changes in India's labour laws. Many industrial players are reluctant to set up factories in India due to unfavourable conditions. How would you reassure the industry that labour would not become a hindrance?
Labour cannot be a hindrance. But the labour mindset has to be developed. Slowly, when the environment is changing, things have to change. Today's labour is more mature and educated and there is more competition. They have to survive in a competitive environment and are taking care of themselves. In some cases, they are not even affiliated to trade unions.
Are you saying trade unions are becoming redundant?
Not at all. They are necessary for the interest of workers, otherwise managements will trample upon their rights. We should protect their rights.
Experts say labour laws are a cobweb in the country. Do you agree? What is the plan of action to clear it?
A lot of changes have happened in the past six decades. Whether it was our government or some other party's, these (changes) were done in the interest of the nation. That would be continued. Labour is not a hindrance but at the same time, industry should take care of labour welfare. Mutual trust has to be developed.
Is there a way labour unrest can be avoided in a factory?
There are labour laws which should be strictly implemented. Many a time, workers are not taken into confidence by managements. But industry should also survive. If the industry will not survive, then what is the way out?
How will you manage to pass the Apprentices Act in the Rajya Sabha, where NDA doesn't have sufficient numbers?
This has already been passed in the Lok Sabha. I am confident that in the Rajya Sabha, too, we will get the support because all parties are interested in it. I don't think there will be any major opposition to a move which will raise industrial productivity.
Finance Minister Arun Jaitley on Monday said addressing labour issues will be a priority. How are you going to go about it?
We have already taken some initiatives through the launch of a unified labour portal, universal account number and a new inspection scheme. We feel that transparency is very important in the labour sector because there is a lot of exploitation and there has to be accountability. All of this should solve most of the problems.
How will you take all of these initiatives forward?
Our main concern is the labour interest, along with ensuring higher productivity. At the same time, there should be a safety net for the labour. All the processes will take place through tripartite discussions. All the stakeholders - management, workers and the government - will be brought on one platform. A proper work culture needs to be developed. For that we will need trade unions' suggestions. Today, everybody is looking up to India and a lot of investment is going to come.
How have you, as the Union labour minister, identified the issues related to labour faced by the industries in the country today?
Our focus area would be to ensure decent working conditions, compliance with labour laws, increase in productivity and a boost to entrepreneurship. We will also look to improve employability in the country through skill development. For instance, in the housing sector there are approximately 43 million workers in the country but the percentage of the skilled labour is only eight per cent. In earlier days, skill was the main priority in India but this has deteriorated over the years.
Do you believe India needs labour law reforms?
This government is committed to labour reforms. India has to emerge as a industrial power house and for that, reforms are necessary.
How are you going to strike a balance between the demands of industry and workers?
Everyone should think about development of the nation. We will need investment. Both employer and employee are one family. Employees should be skilled but creating an appropriate business environment is more important. Unless that happens, investment won't come. These things should be thought upon by trade unions.
How do you view the labour law changes made by the Rajasthan government?
Labour is on the concurrent list of the Constitution. So, states can amend their own laws. Every state has a different set of conditions. We are observing the consequences and reactions.
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Is the Centre planning similar changes in the labour laws?
We have not thought about it at all. But every state government is looking at Rajasthan. Let state governments first take a decision. If a state wants to adopt that model, you can't object.
But the trade unions have opposed the move…
I will have a dialogue with them (trade unions) before the next Parliament session.
We will look into their grievances. There will be opposition to changes at first. But that is not considered progressive. There shouldn't always be a standstill.
Recently, Bosch company's top management sought pro-active changes in India's labour laws. Many industrial players are reluctant to set up factories in India due to unfavourable conditions. How would you reassure the industry that labour would not become a hindrance?
Labour cannot be a hindrance. But the labour mindset has to be developed. Slowly, when the environment is changing, things have to change. Today's labour is more mature and educated and there is more competition. They have to survive in a competitive environment and are taking care of themselves. In some cases, they are not even affiliated to trade unions.
Are you saying trade unions are becoming redundant?
Not at all. They are necessary for the interest of workers, otherwise managements will trample upon their rights. We should protect their rights.
Experts say labour laws are a cobweb in the country. Do you agree? What is the plan of action to clear it?
A lot of changes have happened in the past six decades. Whether it was our government or some other party's, these (changes) were done in the interest of the nation. That would be continued. Labour is not a hindrance but at the same time, industry should take care of labour welfare. Mutual trust has to be developed.
Is there a way labour unrest can be avoided in a factory?
There are labour laws which should be strictly implemented. Many a time, workers are not taken into confidence by managements. But industry should also survive. If the industry will not survive, then what is the way out?
How will you manage to pass the Apprentices Act in the Rajya Sabha, where NDA doesn't have sufficient numbers?
This has already been passed in the Lok Sabha. I am confident that in the Rajya Sabha, too, we will get the support because all parties are interested in it. I don't think there will be any major opposition to a move which will raise industrial productivity.
Finance Minister Arun Jaitley on Monday said addressing labour issues will be a priority. How are you going to go about it?
We have already taken some initiatives through the launch of a unified labour portal, universal account number and a new inspection scheme. We feel that transparency is very important in the labour sector because there is a lot of exploitation and there has to be accountability. All of this should solve most of the problems.
How will you take all of these initiatives forward?
Our main concern is the labour interest, along with ensuring higher productivity. At the same time, there should be a safety net for the labour. All the processes will take place through tripartite discussions. All the stakeholders - management, workers and the government - will be brought on one platform. A proper work culture needs to be developed. For that we will need trade unions' suggestions. Today, everybody is looking up to India and a lot of investment is going to come.
How have you, as the Union labour minister, identified the issues related to labour faced by the industries in the country today?
Our focus area would be to ensure decent working conditions, compliance with labour laws, increase in productivity and a boost to entrepreneurship. We will also look to improve employability in the country through skill development. For instance, in the housing sector there are approximately 43 million workers in the country but the percentage of the skilled labour is only eight per cent. In earlier days, skill was the main priority in India but this has deteriorated over the years.
Do you believe India needs labour law reforms?
This government is committed to labour reforms. India has to emerge as a industrial power house and for that, reforms are necessary.
How are you going to strike a balance between the demands of industry and workers?
Everyone should think about development of the nation. We will need investment. Both employer and employee are one family. Employees should be skilled but creating an appropriate business environment is more important. Unless that happens, investment won't come. These things should be thought upon by trade unions.